Quote from: maracle on September 06, 2020, 09:43:25 PM

Quote from: hoell on September 04, 2020, 06:49:13 PM

Quote from: putudavid on August 24, 2020, 05:36:08 PM

the biggest risks of DeFi applications is,The smart contracts could be hacked.There could be a backdoor that allows someone to steal all of keys. What is the backup plan for this you have.Because we have to trust this and we need reason for that.

Regardless, a run on Compound is less likely to happen than a bank run. Bank runs usually happen because of banks financial mismanagement. And people dont know about that until its too late. Due to the transparent nature of blockchain, users would probably spot anything fishy way before any run on Compound.

each Defi project not only compete with each other in the blockchain technology but also in the evolution of AIPs. During the Beta test, Paradefi invites random users to experience the governance votes as well as to test the AIP as one of our core proposals for the community. Each valuable voted will be codified into the source and submitted to the developers team to validate that.

In the case of decentralized finance, smart contracts are supposed to be its foundation layer as they are self-executing and do not require intermediary oversight. Ethereum introduced the concept of DeFi, which is why most of the DeFi applications are built on Ethereum blockchain